In a case of old oil meets new, the Gulf sheikhdom of Abu Dhabi has emerged as
the latest investor interested in North America's shale oil and gas
revolution.

The oil minister of the United Arab Emirates has said that his country is "grateful" that US shale oil is coming onto the market and that the energy-rich sheikhdom is considering investing into importing gas from North America.

"The UAE may consider investing in gas in the US and Canada to secure supply," Suhail Mohammed Al Mazrouei told oil industry executives and experts at a conference at Chatham House in London. "The UAE is seriously considering that now."

Despite holding the world's seventh largest proven oil and natural gas reserves the UAE is facing rising internal demand for power generation in booming urban centres such as Dubai and the capital Abu Dhabi. A rising population and the need for air conditioning during the summer and seawater desalination have made the country one of the biggest users of electricity on a per capita basis in the world.

According to the International Energy Agency, typical UAE resident will consume 8,271 kg of oil equivalent energy (kgoe) per year compared to 3,254 kgoe in the UK. Although the emirates is a significant oil and gas exporter, policymakers are concerned burning more gas and oil in domestic power plants will erode its primary source of export earnings.

Importing energy from North America could free up more capacity for export to key Asia markets where customers will pay a premium for liquefied natural gas.

"There is a logic to us combining efforts with those countries and have a contribution from the US and Canada," said al Mazrouei.

The development of vast shale resources and fracking in the US has reopened the potential for the world's largest economy to once again be a major exporter of energy. The US banned oil exports in the 1970s but a surge in production from fracking has seen some policymakers call for the policy to be reversed.

The administration of President Barack Obama is currently reviewing more than a dozen requests to export liquefied natural gas. Al Mazrouei said that any investment in importing US gas was being reviewed by Mubadala, an Abu Dhabi government controlled investment company.

However, fracking in the US and the still nascent industry in the UK is largely dependent on high oil prices, which make the process commercially viable.

"If the oil price was $60 I would be doubtful that we would see the shale revolution today," said al Mazrouei.